US importer comments

Mexico: Shortage of larger sizes sees higher avocado prices

Avocados are in short supply as a gap in seasons strengthens an already lively market. The shortage is more pronounced on the bigger sized fruit, while the smaller sizes are in sufficient supply. Prices are high thanks to the constraint, particularly on the larger fruit, and are not expected to drop in the near future, even when other regions begin shipments.

"The avocado season in Mexico is going fine," said Martin Gonzales of Tancitaro's Finest Fruit, in Texas. "There is a shortage of supplies on the big fruit #1. These larger sizes are in high demand and are seeing higher prices of $32-$35. Prices are expected to remain that way in the foreseeable future. There is more of the #2 sized fruit and prices are closer to average for this time of year. Prices on these are forecast to rise by between $3-$5 over the next week. The Hass avocado season has finished in California and Peru is a seasonal deal as well. Mexico is about the only region that is going all year."

Good conditions and expectations for bigger volume

The weather has been mostly favorable for avocados in the Michoacán growing region in Mexico, helping to provide a good yield in an attempt to close the supply gap. Growers also expect that volume will pick up as well as increase over the next year as additional acreage comes online, in response to growing demand.

"Our primary growing region is in Michoacán, and the weather has been good overall during the growing season," Gonzales said. "There has been some rain and a few growers have been experiencing quality issues from the additional rain, such as water stains on the fruit. Overall, however, we are enjoying good conditions and expect a continuing steady volume."

"Over the course of the next year, we are expecting an increase in volume of avocados coming out of Mexico," he continued. "This is due to additional acreage that has been planted in response to growing demand. It's not just the US market that is showing an increased appetite, but also demand from Asia and Europe for Mexican avocado that has helped to drive this growth. In the meantime, we will continue to see an overall shortage until other regions begin their shipments."